According to Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the overall Carrier IP Telephony market, which includes devices used to serve both circuit switched subscribers, Voice over IP (VoIP) and Voice over LTE subscribers, reached $1.6 billion in the third quarter. This is despite a 2 percent decline in the overall revenue in this segment in the last one year. Meanwhile, the sales of IP Multimedia Subsystem (IMS) Core, Session Border Controller (SBC) and Voice Application Server (VAS) systems grew 55 percent, nearly offsetting declines in mature Softswitch (SS) and Media Gateway (MG) segments.
“Wireless voice and messaging infrastructure upgrades are emerging as a catalyst to transform service provider core networks towards a data-center-oriented architecture. There are a significant number of technology trials underway at leading operators today that are utilizing software-only Network Function Virtualization instances of what today are delivered on hardware-dependent systems,” said Chris DePuy, Vice President of Carrier IP Telephony research at Dell’Oro Group. “We expect significant changes in shipment patterns, purchasing trends and supplier relationships as operators transition to more cloud-server and virtual machine-based core infrastructures.”